3 reasons why traders put an $800 target on BNB price

BNB price continues to show strength, leading traders to place an $800 price target on the Binance exchange token.

BNB (BNB) price is trading below $600 after a two-day rally saw it increase its value by 5.5% to reach a high of $605 on May 9. 

Even with today’s pullback, data suggests that BNB price remains bullish on the longer timeframe. The layer 1 token has soared 83% over the last 30 days and 91% in 2024 alone to reach a multi-year $645 on March 16. This rally brought BNB within a 7% reach of its all-time high of $690 reached on May 10, 2021.

Since then, BNB has been consolidating within a wide range, stretching from $500 to $620, leaving many traders wondering when the token will break out toward its all-time highs.

Let’s look at the factors that could potentially send BNB higher.

Binance exchange still leads in trading volumes and market share

Binance remains the top crypto exchange in terms of market share, even with its reduced trading activity in April.

After a wild legal ride in 2022 that ended with the former Binance CEO Changpeng Zhao receiving a four-month prison sentence and a $4.3 billion fine for the exchange, Binance managed to recover its market share, which climbed for five consecutive months between October 2023 and March 2024 to more than 40%.

Data from CCData show that Binance continues to account for the larger part of the spot volume across centralized exchanges despite its share decreasing by 3.69% in April to 33.8%.

Binance’s dominance is corroborated by data from CoinMarketCap, which shows that the total 24-hour trading volume on all crypto exchanges at $63.63 billion, with Binance accounting for $15.86 billion (24.9%) of this on May 10. Coinbase comes in second place, contributing only $3.35 billion, and OKX is in third place with $2.29 billion.

Increased network activity backs BNB’s upside

BNB’s price action over the last few days has led to more on-chain activity, reinforcing the increasing relevance of the BNB Chain.

Data from DefiLlama shows that BNB Chain’s total value locked (TVL) increased by 54% in 2024, suggesting that users and developers are interacting more with the network.

The chart below also reveals that the TVL increased from $4.99 billion on April 30 to the current $6.167 billion, representing a 23.5% increase in May.

This increase in TVL coincides with an approximately 10% increase in price, from lows of $536 on May 1 to the current level.

The increasing value of BNB Chain’s TVL suggests that users and developers are interacting more with the network.

More data from DappRadar reveals that the BNB Chain remains a powerhouse among layer 1 blockchains, handling 5.16 million transactions in the last seven days against Ethereum’s 1.57 million transactions.

The figure above shows that the BNB Chain leads in the total number of decentralized applications (DApps), with more than 5,315 projects built on the blockchain, an 8% increase over the last week. This is way higher than 54,572 DApps on Ethereum and 2,087 on Polygon.

Bull pennant projects a 40% uptick in BNB price

Data from Cointelegraph Markets Pro and TradingView shows BNB price consolidating in a “bullish pennant,” projecting a massive breakout to new all-time highs, as observed by independent analyst World of Charts.

The analyst shared the following chart in a May 10 post on X, saying,

“$BNB showing strength from many #Alts formed bullish pennant successful breakout can lead massive bullish rally toward 1000$ in coming days.”

Fellow analyst Captain Faibik observed a similar market set up in a May 7 post, saying that the BNB price was on the “verge of another bullish rally, so Keep it under the Radar!!”

“In case of a breakout, expecting +40% bullish rally.”

The price is trading 15% below the all-time high at the time of publication. The moving average convergence divergence (MACD) indicator is still in the positive region above the zero line and is about to produce a bullish cross, suggesting that the market conditions still favor the upside.

The key levels to watch are the upper trendline of the pennant at $610 and $650. The bulls have to flip these barriers into support before pushing the price toward all-time highs at $690 and later to the technical target of the governing chart pattern at $800. That will represent a 37% ascent from the current price.